A 1994 settlement agreement between Kenner and the Louis Armstrong International Airport stipulated that the airport would pay to widen the south Kenner road from two to four lanes. In anticipation, the airport paid $1.5 million for 27 properties along Aberdeen.

But the Kenner City Council blocked the project for years, with former Kenner Councilman Marc Johnson saying the airport reneged on its promise to give the city surplus land that could be used as a park to buffer the expanded street from residents.

Finally it appeared that the widening would go forward in 2008 when Johnson relented and the council voted to expropriate the final two properties along Aberdeen needed for the widening.

But now, two years later, an airport spokeswoman said the Federal Aviation Administration is questioning whether airport money can pay for the road. "The FAA brought it to our attention to look at it, and we are looking at it," said Michelle Wilcut.

At issue is whether spending airport money building the road would be considered "revenue diversion." Federal law says money generated at an airport must be used for airport operations, Wilcut said. One issue with the Aberdeen project might be whether non-airport traffic would use the road, she said.

If the airport diverts funds it could face civil penalties or jeopardize current or future grants, according to federal law.

However, city officials hope the airport will abide by the 1994 court settlement agreement which called for Kenner to supervise and the Aviation Board to pay for the roadway widening, according to Mike Quigley, Kenner's chief administrative officer. The agreement resolved a 1992 federal lawsuit between the city and the airport.

"We're still hopeful the roadway will be built," Quigley said.

The widening is estimated to cost between $5 to $6 million and would create a link between the airport's north side and the Loyola drive access to Interstate 10 and give the airport a new north entrance to serve its two general aviation businesses.

The city has already spent about $66,000 expropriating two Aberdeen properties and is waiting for reimbursement from the Aviation Board. "We had the approval of the aviation director to do that," Quigley said.

Former Aviation Director Sean Hunter sent Kenner a letter in February 2009 agreeing that the Aviation Board would reimburse Kenner expropriation costs, and Kenner is waiting on the money, Quigley said.

Hunter has since been indicted on federal charges that he and his wife allegedly tried to pass off a phony insurance claim on a BMW they reported stolen but allegedly hid at the airport. He resigned from the airport in September 2009.

Iftikhar Ahmad, formerly aviation director at the Dayton, Ohio International Airport, took over as Aviation Director in New Orleans in May.

Quigley said that Ahmad was the first to tell city officials about the federal revenue regulations. Before that he said, directors had lobbied to move forward with the street widening.

"They're clearly on record saying this is something they want to do, this is something that's important to the airport," Quigley said, adding that since Ahmad began, city officials have been meeting with airport officials every week or every few weeks to discuss Aberdeen and other issues. "We're going to work with them to see that they can get the FAA approval."